Lynch Fluid Controls Implements SAP Business All-in-One with CONTAX

Lynch Fluid Controls, a Canadian manufacturer and distributor of fluid power components, replaced nearly 20 years of legacy systems with SAP Business All-in-One, implemented by CONTAX. The first phase went live in about seven months, in line with expectations, and gave every department from sales to finance the same integrated data.

At a Glance

The Customer

Established in 1987, Lynch Fluid Controls makes and distributes manifolds, valve systems and electronics from one manufacturing facility in Mississauga, Ontario. Its products are used in the automotive, mining, plastics, logging, military, medical and entertainment industries.

The Challenge

For close to 20 years, Lynch had run several legacy systems for sales orders, work orders, inventory and accounting, along with in-house solutions and third-party software. Departments worked in silos, with little visibility into other areas of the business. Processes were manual and heavily paper-based, and finance needed better accounting, forecasting and real-time reporting to plan for growth.

Lynch wanted a Tier 1 system that could grow with the company, with no bolt-on functionality and no reliance on third parties to update software. Above all, it wanted to use IT to improve customer service, for example by letting sales see available inventory in real time.

Lynch had also heard of ERP projects gone wrong, with budget overruns and long delays. Its research suggested success depended less on the software than on the implementation partner, the methodology and the company's own commitment. It needed a partner that could give it certainty over costs, timelines and results.

The Solution

Lynch chose SAP Business All-in-One, with SAP's industry best practices built in. Its CIO, Gavin Lynch, asked SAP Canada for partners to speak with, and CONTAX was near the top of SAP's list. Lynch selected CONTAX as its implementation partner, with the support model, both for the implementation and five and ten years out, a key part of the decision.

The Results

• The first phase was completed in about seven months, in line with expectations
• Every department, from sales to warehouse to finance, works from integrated data, so customer service can give realistic production and delivery dates
• More accurate material and inventory management, with fewer warehouse and picking errors
• Moving customers to electronic invoicing saves Lynch thousands of dollars a year in paper and postage
• Customers receive invoices three to five days sooner than by mail, which helps accounts receivable aging
• Lynch's team is largely self-sufficient and now uses CONTAX for strategic, longer-term planning